According to a recent Dealroom report on the Spanish tech ecosystem, the combined enterprise value of Spanish startups surpassed €100 billion in 2023. This milestone signifies a burgeoning tech landscape and highlights Spain’s growing influence in the global tech scene.
In line with this upward trajectory, Madrid-based venture capital (VC) fund Seaya has announced the closure of Seaya Andromeda, an “Article 9” €300 million climate tech fund headquartered in Madrid. The fund marks a significant step towards advancing sustainable technology in Spain and Europe.
Understanding Article 9 and Seaya’s Mission
Article 9 of the EU’s Sustainable Finance Disclosures Regulation Act mandates investment firms to ensure their investments positively impact society or the environment. This regulation underscores the importance of sustainable investment practices in Europe, encouraging firms to contribute to global environmental goals.
Seaya, established 12 years ago, has consistently focused on mission-driven startups across Europe and Latin America (LatAm). The new “Andromeda” fund aims to invest in growth companies specializing in energy transition, decarbonization, sustainable food value chains, and the circular economy. This focus aligns with global efforts to combat climate change and promote sustainable development.
Investment Strategy and Goals
The Seaya Andromeda fund plans to deploy between €7 million and €40 million as initial investments, retaining capital for follow-on funding. By the end of 2027, Seaya aims to make 25 investments, with five already secured.
Seaya’s Investment Portfolio
Seaya’s investment history reflects a strong commitment to climate tech. Some notable investments include:
- Biome Makers: Specializes in using microbiome technology to enhance agricultural productivity.
- Clarity.ai: Provides environmental, social, and governance (ESG) insights for sustainable investments.
- Crowdfarming: A platform connecting consumers directly with farmers to promote sustainable food production.
- Descartes: Develops predictive models for climate risk management.
- RatedPower: Innovates in the solar energy sector with software solutions for designing and optimizing solar power plants.
- Samara: Focuses on renewable energy solutions.
- Wallbox: A company specializing in electric vehicle charging solutions, which went public on the New York Stock Exchange in 2021.
Seaya’s Strategic Advantage
Seaya was founded in 2013 by former private equity investor Beatriz González. Her experience spans Morgan Stanley, Excel Partners, and Darby Overseas Investments in the U.S. She later served as a director of Telefónica’s pension fund, leading its alternative assets program. González’s diverse background and passion for sustainable investing have been pivotal in steering Seaya’s strategic direction.
In a recent interview, González discussed the advantages of having a climate tech fund based in Spain. She highlighted Spain’s proximity to climate change impacts, such as extreme heat, drought, wildfires, and storms. These conditions foster a heightened social awareness and urgency for climate solutions.
Spain’s industrial strengths, particularly in renewable energy, auto parts manufacturing, agriculture, and real estate, provide a robust foundation for climate tech investments. González emphasized that Southern Europe’s expertise and talent in these sectors offer a competitive edge.
Expertise in Deep Tech Investment
Seaya’s team includes engineers with expertise in climate tech, enabling informed investment decisions. Additionally, their Limited Partner (LP) network includes major European Union banks like Santander, which specialize in project finance for energy and manufacturing sectors. This network supports thorough due diligence and accelerates investment processes.
Seaya’s Recent Investments
Seaya has leveraged its expertise to invest in several impactful companies:
- Seabery: A Spain-based augmented-reality skill training solution that developed AR software and hardware for training welders. This reduces carbon emissions by 95% per welding session by eliminating the need for real welding during training.
- Recycleye: A UK-based AI-powered waste management startup that builds robots to sort rubbish for recycling.
- Pachama: A San Francisco-based climate tech company using data to verify the quality of carbon credits and facilitate new carbon credit projects.
The announcement of Seaya Andromeda follows other signs of a funding renaissance in Southern Europe. Recently, Plus Partners launched in Barcelona, aiming to raise a $30 million to $50 million fund. These developments underscore the region’s growing prominence in the global tech and investment landscape.
According to the annual “State of European Tech” report for 2023, Spain’s tech ecosystem ranks fourth overall in Europe and recorded the highest number of startup fundings last year. This growth trajectory is a testament to Spain’s vibrant and dynamic tech scene.
| Feature | Details |
|---|---|
| Fund Name | Seaya Andromeda |
| Fund Size | €300 million |
| Regulatory Classification | Article 9 (EU Sustainable Finance Act) |
| Investment Focus | Energy transition, decarbonization, sustainable food value chains, circular economy |
| Investment Range | €7 million – €40 million (initial checks) |
| Number of Planned Investments | 25 by end of 2027 |
| Notable Investments | Biome Makers, Clarity.ai, Crowdfarming, Descartes, RatedPower, Samara, Wallbox |
Seaya’s strategic investments and adherence to sustainable finance regulations position it as a leader in climate tech funding. The firm’s focus on impactful, mission-driven startups aligns with global sustainability goals and addresses pressing environmental challenges.
- Economic Growth: The fund’s investments are expected to drive economic growth in the Spanish and European tech ecosystems.
- Environmental Benefits: By focusing on decarbonization and energy transition, the fund aims to contribute significantly to environmental sustainability.
- Social Awareness: Investments in climate tech raise social awareness about climate change and the importance of sustainable practices.
- Industry Expertise: Spain’s industrial strengths in renewable energy, agriculture, and manufacturing provide a competitive advantage.
- Global Influence: Seaya’s investments have the potential to influence global climate tech trends and promote sustainable development worldwide.
As Spain’s tech ecosystem continues to grow, Seaya Andromeda stands out as a key player in driving innovation and sustainability. The fund’s strategic focus on climate tech reflects a broader commitment to addressing climate change and promoting sustainable economic development.
Seaya Andromeda’s launch represents a significant milestone for Spain’s tech ecosystem. By investing in climate tech and adhering to Article 9 regulations, Seaya is setting a benchmark for sustainable investment practices. The firm’s strategic approach, combined with Spain’s industrial strengths, positions it as a leader in the global climate tech landscape. As the tech ecosystem in Southern Europe continues to thrive, Seaya’s contributions will undoubtedly play a crucial role in shaping a sustainable future.